Maximo, Inc. began operations in 2022 and has provided the following information. 1. Pretax financial income for 2022 is P100,000. 2. The tax rate enacted for 2022 and future years is 40%. 3. Differences between the 2022 income statement and tax return are listed below. a. Warranty expense accrued for financial reporting purposes amounts to P5,000. Warranty deductions per the tax return amount to P2,000. b. Gross profit on construction contracts using the percentage-of-completion method for books amounts to P92,000. Gross profit on construction contracts for tax purposes amounts to P62,000 c. Depreciation of property, plant, and equipment for financial reporting purposes amounts to P60,000. Depreciation of these assets amounts to P80,000 for the tax return. d. A P3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income. e. Interest revenue earned on an investment in tax-exempt government bonds amounts to P1,400. 4. Taxable income is expected for the next few years. Required (show your solutions): 4. Fill in the amounts of the following: Income before income taxes Income tax expense Current Deferred Net income 5. Assume that in 2023 Maximo reported a pretax operating loss of P100,000. There were no other temporary or permanent differences in tax and book income for 2023. Prepare the journal entry to record income tax expense for 2023. It is probable that Maximo will return to profitability in 2024